Sony Q2 Revenues Improve, Video Game Hardware Sales Down - News

Sony has reported on its second quarter 2012 sales, which ending September 30, 2012. Sony's Game business recorded revenue of 148.2 billion yen ($1.9 billion), down from 176.0 billion yen ($2.2 billion) during the same period a year ago. Profits fell slightly to 2.3 billion yen ($28.8 million), from 3.0 billion yen ($37.5 million) last year.

Overall, Sony has recorded revenue of 1.6 trillion yen ($20.1 billion), up by 1.9 percent during the same period a year ago. Good news is that losses fell by 42.5 percent to 15.5 billion yen ($193.8 million), from 27.0 billion yen ($337.6 billion) last year.

Sony's game business also reported on its hardware and software sales. The PlayStation 3 and PlayStation 2 sold a combined 3.5 million units, down from 4.9 million a year ago. The PlayStation Vita and PSP sold a combined 1.6 million units, down from the 1.7 million the PSP sold a year ago. The PlayStation Vita was not available a year ago.

Sony has lowered its forecast for handheld (Vita and PSP) hardware sales for the remainder of its 2012 fiscal year. Sony now expects to sell 10 million handheld units, which is down from 12 million, however home console (PS3 and PS2) sales are still expected to sell 16 million units. Sony also expects software sales to be the same as 2011, about 196.7 million units.

you guys always ask for price cut; this is the reason it cannot be done to just increase sale, revenue goes up, but profit goes down. It's hurting the bottomeline. Of course, no one can predict the effect of software sales following the purchase of the console.

If you are taking a loss of 50 bucks a console and you sell 1 million, that's 50 million red in the books you have to try to balance. Nintendo has not sold a console at a lose (maybe recent 3DS drop) but N has survived all these years by selling underpowered console at a gain. Strong first party sales plus a console that sells for a profit is a good biz strategy for Nintendo